The modern day accounting has witnessed a major transformation. With systems and processes being automated, the world of technology has whipped up some magic. The business landscapes have seena drastic transformation and paved way towards a more effective and efficient operation realm.
The world of accounting has advanced and progressed in all spheres, hence, running an accounting task would require adept knowledge on business owner’s part. Here are some of the accounting trends that are expected to shape and change the accounting industry in 2020:
Inclination towards Automation
The most prominent shift taking over the old traditional methods is automation in accounting realm.We have been witnessing this increasingly, over the past decade and we expect the same to continue. Automating the laborious tasks like, audits, banking, payroll processing, tax preparation etc. is sure to help eliminate the chances of human errors and confusions.
Does this mean your accounting task will now be handled by bots? No, not entirely, the major labor-intensive tasks would be handled by bots and the supervision task of auditing would still be handled by an experienced accounting services provider. Small business accounting with the right automation can significantly change the business dynamics.
Accounting Software to the Rescue
Technologically driven solutions have transformed the fate of accounting industry, and it is expected to only intensify in the future. Accounting software companies are sharing some robust platforms capable of handling software functionalities that would help minimize the manpower efforts. It will also help to optimize the process in a better and effective way. Some of the reliable and popular accounting software are Xero , Quickbooks, MYOB, FreeAgent , Sage Business Cloud and Sage Intact.
Outsourcing Accounting task to an Expert
The fastest and the most lucrative area in the accounting realm is outsourcing. Businesses are shifting towards outsourcing the accounting task rather than keeping it in-house, since it gives companies more focus on limiting their resources and increasing the overall profitability. CPA firms are outsourced the task of handling business accounts, they analyze the client’s financial situation and suggest beneficial steps to ensure a prosperous business. Small businesses have to manage the business in a carefully calculated manner with limited expenses. To ensure that everything takes place as expected, outsourcing accounting services is more or less a necessity for the small businesses.
Understanding of Block chain
Blockchain has already changed the dynamics of accounting sector. It has helped lower the costs of compiling and maintaining ledgers. With Blockchain technology, the available resources come to better light, every business information becomes transparent and unobstructed. Distributed ledger laboratories are being introduced. The top names in the accounting industry have been adopting and swearing by the positive effects it has on the accounting industry.Small business accounting may also benefit significantly.
Data Analytics to predict the future
What does data do? Data provides you a clear understanding on where the business stands and what is working well for your business, and what might affect the business negatively. Data opens doors to predicting the future, understanding the present, and learning from the past. Data analytics has become popular in the accounting industry, with new roles being offered to data specialists who can play around with data and analyze what it depicts. Data analysis offers the valuable insight on the future of business. Data analytics solutions are being now used in accounting industry as well.
Leap towards Cloud-based accounting
Cloud-based accounting systems have enabled the firms to gain an access to their system anytime, from any place, through the internet. Tracking inventory, managing sales, understanding the expenses, all can now be done from anywhere in the world with all the data being available on cloud. This has improved client communication as well as management of the project, since a business owner has clarity of all the data. This essentially means major accounting services being available online, like accounts receivable, payable, etc.
Big Data in Accounting World
Big data has been a major part of various industries across varied sectors, it has now found its way in the accounting world as well. Big Data essentially helps firms broaden their horizon and assess the profitability of a business decision with experienced and proficient accountants working behind the scene. The data that is collected is assessed by the experts to help turn them into actionable insight. Analytics, data science and big data have together embarked the transformation of accounting industry.
“The measure of Intelligence is the ability to change”, Albert Einstein. The above-mentioned accounting trends uphold digitization and the power of automation to bring effective and reliable changes in the accounting world. A business, irrespective of its size, must adopt changes in the industry to stay on top of the game.